Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced that the firm arranged the sale of a recently constructed, four-tenant net-leased investment anchored by a Starbucks Drive-Thru in Riverside, California, situated directly off Interstate 215 on/off ramps (154,680 cars per day). Adjacent to the Interstate 215 is March Air Reserve Base, a 2,075-acre facility with over 8,000 personnel assigned to it and a 1,750-civilian population.
Hanley Investment Group’s Executive Vice President Eric Wohl and Associate CJ Kiehler represented the seller, a local developer based in Irvine, California. The buyer, a private international investor, was represented by Shirley Kim of Max Mega Group Realty in Los Angeles. The sale price was $4.89 million.
“We generated multiple qualified offers and secured an all-cash foreign buyer for the four-tenant, freeway-adjacent, triple-net retail investment,” says Wohl. “The newly developed property was 100% occupied at the time of sale and is expected to be an excellent long-term investment with strong cash flow.”
The 6,963-square-foot Starbucks Drive-thru-anchored pad building sits on 1.14 acres and was built in 2020. It is located at 22420 Van Buren Boulevard in Riverside and is a part of Veteran’s Plaza, a community shopping center and hotel including In-N-Out, Chipotle Mexican Grill, Hampton Inn + Home2 Suites, Circle K/76 gas station and more, promoting crossover shopping.
The four tenants occupying the pad building are Starbucks Drive-Thru, Express Gadget Repair, Desperate Measures (tactical gear and accessories for hunters, adventurers, marksmen and other shooting competitions) and Jersey Mike’s Sub. According to Wohl, “The four tenants that occupy the building represent an internet-resistant tenant mix with a weighted average lease term (WALT) of nearly seven years. Additionally, Desperate Measures is a local tenant that just relocated from a successful store two blocks away.”
The pad building is situated between In-N-Out and Chipotle Mexican Grill restaurants at the signalized intersection of Van Buren and Opportunity Road (over 40,000 cars per day). Traffic on Van Buren Boulevard is projected to increase to 72,000 cars per day. The Interstate 215 and Van Buren interchange was completely remodeled with costs exceeding $32 million. The site also benefits from excellent freeway signage along Interstate 215.
Veteran’s Plaza is located within Meridian Business Park, a 1,290-acre master-planned commerce and distribution center planned to have 16 million square feet of building space, creating up to 18,000 jobs. Current tenants include Amazon, UPS, Sysco, Kaiser Permanente, Kia Automotive, McLane Foods and others.
There are over 232,000 residents with an average household income in excess of $91,000 within a five-mile radius of the property. The daytime population exceeds 189,000, providing an additional consumer base. Lake Perris, an 8,800-acre state recreation area, is just two exits south off of Interstate 215 and is known for its boating, hiking, fishing, swimming, picnicking, rock climbing, horseback riding and camping.
“With interest rates continuing to push up and volatile economic conditions, investors are focused on finding ‘safe-haven’ investments in strong markets that will help protect and grow their equity,” notes Wohl. “This new construction Starbucks-anchored pad adjacent to In-N-Out and Chipotle is an excellent example of the type of product that many investors are gravitating towards in today’s market.”